FIRM SURAJMAL BANSHIDHAR, ETC. vs THE MUNICIPAL BOARD, GANGANAGAR

The Supreme Court held that the terminal tax levied by the respondent Board was illegal as it was not authorized under the Rajasthan Town Municipalities Act, 1951, specifically Section 179(2), which outlines the limitation period for suits against municipal boards. The Court clarified that if a tax is prohibited by an Act, it cannot be considered as done in pursuance of the Act. The appeals were allowed, affirming the High Court's decision that the amounts paid by the appellants were recoverable through suits, as the suits were not barred by limitation under the Act.